Banks, resource firms drag FTSE 100 lower

LONDON (MarketWatch) — U.K. stocks ended lower on Friday, tracking losses from global financial markets, as doubt that U.S. politicians will reach a budget deal in time to avert the fiscal cliff scared investors out of risky assets.

The FTSE 100 index
UKX, -0.61%
slumped 0.3% to close at 5,939.99, but held on to a 0.6% weekly gain.

Sentiment across most financial markets was dented by fading optimism that Democrats and Republicans in the U.S. will agree on a deal to avert billion of dollars in tax hikes and spending cuts, referred to as the fiscal cliff. House Republicans late on Thursday canceled a planned vote on a tax-cut bill, further dashing hopes of a deal before the end of the year. See: House Republicans cancel Plan B tax vote

Telecom firm BT Group PLC
BT.A, -0.27%BT, -1.04%
fell 1.1% after the U.K. telecoms regulator OfCom said the company is to repay 94.8 million pounds ($154 million) to competitors for overcharging for wholesale Ethernet services.

Bucking the negative trends, shares of Carnival PLC
CCL, -0.46%
rose more than 2%. The cruise-line operator recouped a bit from a 6.1% loss the prior day on the back of a weak earnings report.

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